Oman’s burgeoning startup and SME ecosystem received a significant boost in 2025, as the value of government contracts doubled to a record $4.4 billion, up from $2.1 billion the previous year. According to the Oman Tender Board (OTB), small and medium enterprises were the primary beneficiaries, securing an impressive 58 percent of the total tender value.
A Strategic Shift To Empower SMEs
This substantial increase in contract awards to SMEs reflects a deliberate government strategy to foster local business growth and enhance competitiveness. The push was most prominent in high-value sectors, indicating a move to integrate SMEs into the core of the nation’s economy.
“Most of the awards to SMEs in 2025 were in minerals, oil and gas in a bid to boost their businesses and compete with the established companies,” stated Saeed Al Amri, Director General of Projects at the OTB.
Energy and Minerals Lead The Way
The growth in Omani contracts was largely driven by the power, minerals, renewable energy, and oil and gas sectors. In a notable shift, these industries have now overtaken construction in terms of the value of infrastructural projects awarded, highlighting the evolving priorities of the Sultanate’s economic development plans.
Broader Ecosystem Support
The impact of this focused support is evident across the ecosystem. Oman is currently home to approximately 267,000 SMEs, which contributed a significant $17 billion to the nation’s GDP in the third quarter of 2025, a 6 percent increase compared to the same period in 2024.
Financial backing for these enterprises is also on the rise. Oman’s state-owned Development Bank increased its funding to SMEs in the first half of 2025, with the value of loans disbursed rising 13 percent year-on-year to $285 million. This financing was extended to 3,716 SME companies, aiming to encourage more investment in the Sultanate and capitalize on growth in support of startup businesses.
About Oman Tender Board
The Oman Tender Board is the central governmental body responsible for overseeing the tendering and awarding of public contracts in the Sultanate of Oman. It ensures a transparent, fair, and competitive process for all government projects, playing a crucial role in the nation’s economic development and the empowerment of local businesses, including SMEs.
Source: AGBI
